Germany, France agree deal to support European car industry

Germany and France have agreed a deal to protect Europe's automotive industry, the countries said in a statement Friday.

The plan aims to cut CO2 emissions and support the development and construction of electric cars in Europe, the statement added.

"Our shared ambition is clear: to successfully transform our automotive industry while maintaining our climate ambition and ensuring that the cars of the future are produced in Europe," the countries said. 

The pact also includes incentives for investment, research and production.

Tough competition from China

European car makers have been struggling to compete with their Chinese counterparts in the electric vehicle market,  resulting in cost-cutting measures.

Premier of the state of Lower Saxony Olaf Lies hailed the agreement as a "strong signal" in support of Europe's car industry that protects jobs in the sector.

Lower Saxony is where German automotive giantVolkswagen's headquarters are located, in the city of Wolfsburg.  Lies is also part of VW's supervisory board.

Edited by: Natalie Muller

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